Recent research on money position management suggests that the reserve deficits of smaller depository institutions normally occur:
A)early in the reserve maintenance period.
B)early in the reserve computation period.
C)late in the reserve maintenance period.
D)late in the reserve computation period.
E)during low credit demand periods.

Question

Quizplus · Accepted Answer

According to the research on money position management, reserve deficits of smaller depository institutions usually occur late in the reserve maintenance period. This is because smaller institutions often have fewer resources to manage their cash flows efficiently and may wait until the end of the maintenance period to adjust their reserves.

Recent Research on Money Position Management Suggests That the Reserve